The factory is expected to create 30,000 jobs in this drought-prone area in Maharashtra and ease the shift from agriculture to industry

Currently, there is one AC train that runs on the western line, between Churchgate and Virar. It was launched on December 25, 2017.(HT Photo)

Air-conditioned (AC) coaches for Mumbai local trains will be manufactured at the proposed rail coach factory in Latur, in Marathwada region, Union railway minister Piyush Goyal announced while addressing a press conference on the Union Budget in Delhi on Thursday.

Goyal said: “Latur is in Maharashtra’s backward Marathwada region. The factory will first manufacture coaches for Mumbai Urban Transport Project-III and later on AC coaches will be manufactured there.”

The factory is expected to create around 30,000 jobs.

Railway and state authorities have proposed to buy 47 and 210 AC trains for the Mumbai suburban network under the MUTP’s phase 3 and phase 3A, respectively.

A day before the budget, a high-level meeting was held between Goyal and Maharashtra Chief Minister Devendra Fadnavis in Mumbai on the setting up of the coach factory in drought-hit Latur, located around 475 km from Mumbai.

For setting up the factory, the state government has offered several concessions on land and taxes, besides an assurance to fast-track the approval process.

The estimated cost for setting up the factory is Rs2,000 crore, and the Central Railway is likely to given the responsibility, railway officials said.

Latur, one of the most backward areas in Maharashtra, has been proposed so as to push development in the region, which sees heavy migration. The factory is expected to create an industrial ecosystem in the drought-prone region and help the shift from agriculture to industry.

Since December 25, one AC local has been running between Churchgate and Virar stations. The Chennai-based Integral Coach Factory has manufactured this AC train; it will supply Mumbai with nine more AC trains.